In 2020, the economy suffered its largest contraction on record as it shrank by 27.4% due to the impacts of the COVID-19. While the early closure of international borders limited the spread of the virus, tourism was hard hit, reversing the sector’s recovery since Hurricane Irma in 2017.

The social consequences were equally severe. Wide-spread business closures and job losses resulted in increased unemployment and loss of income for many. Policy responses to cushion this dislocation included temporary duty exemptions on food and hygiene products, as well as tax payment deferrals. Financial institutions offered support through temporary repayment moratoria and waivers on late fees and charges.

The Government secured budgetary support from its development partners to compensate for lower fiscal revenues on account of COVID-19. These grants assisted with the funding of expanded expenditures for COVID-19 healthcare management and social protection for the most vulnerable people while allowing for the maintenance of fiscal stability.